Stocks tumbled in Europe on Monday, with the German market down 3.4%, Italian stocks down 4.7% and the Spanish market off 3.5%. It didn't help the mood that Spanish government bond yields continue to rise after voters threw out the Socialist government: The 10-year yield rose to a new euro-era high of 6.55%, from 6.38% on Friday.

On Wall Street, stocks were broadly lower in thin trading. The Dow Jones industrial average was off 316 points, or 2.7%, to a five-week low of 11,479 at about 11 a.m. PST. The Dow slumped 2.9% last week.

Commodities also were hit hard Monday, with gold futures dropping $46.40 to $1,678.30 an ounce, a four-week low.